4 state-owned commercial banks simultaneously reduce interest rates

Vietcombank, BIDV, VietinBank, Agribank have just announced new deposit interest rates, effective from today.

On August 23, at Agribank, the mobilization interest rate decreased more deeply than the above 3 banks. Currently, the bank's 12-month term interest rate is the same as BIDV , VietinBank, Vietcombank, all at 5.8%/year. The interest rate for 13-month terms and beyond is only 5.5%/year, down 0.5% compared to before.

Also lowering interest rates, BIDV adjusted the interest rate for 1-month and 3-month deposits at the counter down 0.3% to 3-3.8%/year. The interest rate for 6-month terms also decreased from 5% to 4.7%/year. The interest rate for 12-month terms was sharply adjusted from 6.3% to 5.8% (down 0.5%).

VietinBank also applied the same adjustment as BIDV, bringing the highest deposit interest rate at this bank to only 5.8%/year, applied for terms of 12 months or more.

With Vietcombank, the mobilization interest rate also decreased by 0.3-0.5% in a series of terms. Accordingly, the interest rate table at the bank's counter is quite similar to BIDV, all listed terms of 1 month - 3 months - 6 months at 3% - 3.8% - 4.7%/year, respectively. The interest rate for terms of 12 months or more decreased by 0.5%, down to 5.8%/year.

Implementing the Government's policy of considering lowering lending interest rates, in mid-August, the State Bank of Vietnam (SBV) sent a document to credit institutions and foreign bank branches requesting them to continue implementing solutions to reduce interest rates.

Accordingly, the State Bank of Vietnam requires credit institutions to reduce lending interest rates for existing outstanding loans and new loans, striving to reduce interest rates by at least 1.5-2%/year according to the direction of the Government and the Prime Minister to support businesses and people to recover and develop production and business.

The State Bank also requires credit institutions to report their commitment to reduce lending interest rates this year for existing outstanding loans and new loans before August 25.

According to statistics from the State Bank of Vietnam, credit has only shown signs of increasing again since June. By the end of July, credit growth reached about 4.6%, a significant decrease compared to the same period in 2022 (9.54%). This shows that businesses' ability to absorb credit capital is very difficult. The State Bank of Vietnam still aims to promote credit growth with reasonable interest rates. Since the beginning of 2023, state-owned commercial banks have repeatedly adjusted lending interest rates to support people and businesses at a cost of thousands of billions of VND.

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